KUALA LUMPUR: The High Court here was told today that the RM1.25 billion contract price for a hybrid solar project for 369 rural schools in Sarawak, had been set by Jepak Holdings Sdn Bhd without undertaking any price negotiations with the Education Ministry.
Treasury deputy secretary-general (management) Datuk Othman Semail, 58, said no price negotiation had been undertaken between the Education Ministry and Jepak Holdings for the purpose of securing the best value-for-money price before the letter of acceptance (SST) was issued.
“The contract price of RM1.25 billion for the solar project was determined by Jepak from the start and was accepted completely by the Education Ministry.
“To my knowledge, no value management was undertaken although this was a requirement for all physical contracts exceeding RM50 million,“ he said during examination-in-chief by deputy public prosecutor T. Deepa Nair at the corruption trial of Datin Seri Rosmah Mansor, the wife of former Prime Minister Datuk Seri Najib Abdul Razak.
Othman, who at the time was the Government Procurement Division secretary under the Finance Ministry, said he had never had a clear understanding of the need for the solar project, its scope, the ability of the Education Ministry to finance the project, and the capacity of Jepak Holdings to implement the project.
According to the prosecution’s seventh witness, the solar project was awarded to Jepak Holdings on the instructions and approval of Najib, who at the time was also the Finance Minister.
Reading from his statement, Othman said the Education Ministry had issued the letter of acceptance (SST) to Jepak Holdings on Nov 10, 2016, to implement the project.
“The Government Procurement Division and I were involved in managing the procurement of the hybrid solar project because it was apparently awarded to Jepak through a process of direct negotiations.
Nevertheless, he said, “to my understanding, the procedures and process relating to price negotiations were not observed before the SST (letter of acceptance ) was issued to Jepak”, adding that the Education Ministry had issued the SST without undertaking any price negotiation.
Othman also informed the court that documentation such as a report on price negotiations, was not in existence, while a Jepak Holdings letter dated Nov 6, 2016, lacked the information required for the issuance of the SST.
“The letter did not explain the outcome of price negotiations which apparently had been conducted, and based on my experience, this was the one case in which Datuk Seri Najib gave instructions to issue the SST to Datuk Seri Mahdzir Khalid, the Education Minister at the time, based on the request of the company (Jepak Holdings).
“The Government Procurement Division did not take any action against the Education Ministry for issuing the SST without undertaking price negotiations,“ he said, adding that this was because the SST had been issued and a contract had been entered into between the Education Ministry and Jepak Holdings, based on the terms stipulated in the SST.
According to Othman, on March 22, 2017, his office had received an application from the Education Ministry for advance payment amounting to RM130 million for Jepak Holdings to enable the company to implement the solar project, based on minutes made by Najib in reference to a letter from the company to the prime minister. Najib’s minutes read to this effect: “This application is approved. Kindly issue an advance urgently”.
Rosmah, 68, has claimed trial to a charge of soliciting RM187.5 million and two counts of receiving a bribe of RM6.5 million from Jepak Holdings managing director Saidi Abang Samsudin, through her former aide, Datuk Rizal Mansor, in exchange for helping Jepak Holdings obtain the RM1.25 billion project to provide solar energy to 369 rural schools in Sarawak.
She allegedly committed the offences in three places, namely Lygon Cafe at Sunway Putra Mall in Jalan Putra here; her house at Jalan Langgak Duta, Taman Duta here, and at the Seri Perdana Residence, Persiaran Seri Perdana, Precinct 10, Putrajaya between January 2016 and Sept 7, 2017.
Hearing continues tomorrow before Judge Mohamed Zaini Mazlan. - Bernama
